The Social Security Extension Act 2024 is a legislation aimed at enhancing benefits for seniors who receive Veterans Affairs (VA), Supplemental Security Income (SSI), and Social Security Disability Insurance (SSDI). Legislation introduced by Senator Bernie Sanders aims to give an additional $200 per month, or $2,400 annually, to people who are now receiving benefits or who will turn 62 in 2024. It is less probable that the act will pass the House of Representatives, though, because of the Republican majority.
Social Security remains, despite potential challenges, a vital source of steady income for a large number of Americans. The Social Security Expansion Act is a policy that contributes to higher social security benefits for both current and future recipients. It helps with some additional benefit expenditures and benefits over 71 million Americans. A federal initiative called Social Security provides financial assistance to eligible individuals.
Social Security Expansion Act 2024
Senator Bernie Sanders is suggesting an increase of USD 200 per month for recipients of Social Security benefits who age 62 in 2023 or who are currently receiving payments through the reintroduction of the Social Security Expansion Act 2024. Furthermore, the bill intends to restore student aid to children of deceased or disabled workers, allowing them to remain eligible until they are 22. It also recommends merging the Old Age and Survivors Trust Fund with the Disability Insurance Trust Fund (DITF) to offer all-encompassing support for the aged and disabled communities. The Department of CPI tracks rising prices, and adjustments for cost of living have an impact on federal benefit rates. Under the Social Security Expansion Act of 2024, an extra $200 USD monthly benefit is made available.
What is the Social Security Expansion Act?
Social Security is a popular scheme that works effectively in helping users get their benefits on time and in the right quantities. Prior to this law, millions of Americans who were living in poverty could now afford a minimal quality of living. By extending the Security Act’s solvency by 75 years, the Social Security Expansion Act is a piece of legislation that increases yearly Social Security benefits. This law evaluates seniors’ whole spending patterns using the Consumer Price Index. The plans, according to CPI, raise taxes on all earnings over $250K USD by 12.4%. The older population benefits from this legislation since it increases their net income tax investment and allows them to trade or engage in economic activities. Payroll taxes are levied on earnings, income from self-employment, and salaries over USD 250,000 will increase via this act.
Social Security Expansion Act 2024 Funding Concerns
It is anticipated that Social Security’s trust fund can run out by 2035, that raises concerns about the program’s long-term viability. If more funding is not forthcoming, millions of beneficiaries may see a 25% reduction in monthly payouts. Currently, however, the Social Security Administration is able to make all promised payments until 2035 because to its extra $2.85 trillion trust fund. After that, it is expected that there will still be sufficient funds to cover 80% of the benefits that were promised.
Addressing Financial crisis via this Act
- For those who are already receiving Social Security or who reach 62 in 2024, the Social Security Expansion Act proposes increasing benefits by $200 per month. The estimated fiscal deficit in 2035 and the high rates of inflation that are now in place make the Social Security Expansion Act a relevant and timely proposal. The Act aims to alleviate the financial challenges faced by handicapped and elderly individuals who rely on fixed incomes and Social Security. Increasing benefits for senior adults receiving VA, SSI, and SSDI is the primary objective of the Social Security Expansion Act of 2024.
- The bill acknowledges that, even if its adoption is impossible given the current political climate, additional funds and help are needed for people whose financial stability depends on Social stability, a crucial financial resource because projections indicate that the program’s trust fund may run out by 2035, there are concerns about how Social Security will be paid in the future. Due to this circumstance, millions of beneficiaries may see a 25% reduction in monthly payouts. The primary beneficiaries of the act are the seniors and disabled who depend on Social Security benefits and fixed incomes.
Huge Increase to Annual Social Security COLA
The yearly Social Security COLA calculation is to be altered, according to U.S. Representative Ruben Gallego, D-Ariz., and U.S. Senator Bob Casey, D-Penn. Recently, bills have been presented in the US Senate and House of Representatives to replace the CPI-W with the Consumer Price Index for the Elderly (CPI-E), if it is a higher measure of inflation than the CPI-W. Although most Social Security claimants are unemployed, the CPI-W represents changes in prices for workers. Furthermore, healthcare costs that are often greater for older Americans are given more weight by the CPI-E.
As presidential election is there this year, so it is not expected we will see any changes in Social Security. Social Security will probably be discussed extensively but not really addressed.
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